Cryptocurrency is another name for bitcoin, which is a virtual currency. That means there are no physical coins or notes; everything is digital. People can send the cryptocurrency to anyone online without having to go to a bank or using payment gateways. Therefore, bitcoin is the most famous cryptocurrency in the world, invented in 2007 by Satoshi Nakamoto. Bitcoins are highly used to make quick payments as it helps them in avoiding transaction fees.
There are a lot of people who even use bitcoin as an investment just in the hope that its value increases in the market. There are several ways to buy bitcoin. You can buy using a credit card or by a process known as mining which means circulating more bitcoins online. It is done by experts, though.
Bitcoin money can be stored in a digital wallet which you can install on your phone, tablet, personal computer or laptop. It can be kept in any hardware.
Yes, buying and functioning with bitcoin is indeed much easier as compared to real money. Still, before you buy a bitcoin, you must know that it does have the same protections as the real money has because bitcoin is entirely digital which is very prone to hacking. There are a lot of frauds and scammers that ask people to pay via bitcoin because they know there is no refund policy in bitcoin if you do not receive the product you ordered from someone online using bitcoin. So, be careful in such cases.
Enlisted below are some essential features of bitcoin.
Not backed by a government or any financial institution
Unlike real money, bitcoins are not controlled or regulated by any central institution or government. Which again indicates that bitcoin is stored online and does not have proper protection like money stored in a bank account. So if the company goes out of business or is hacked, the government shall not stand responsible for it as it did not have any control over it.
Bitcoin’s value keeps changing.
Bitcoin’s value can even change within an hour. There are high chances that an investment that might be worth thousands of dollars end up being worth just a few dollars, and vice versa. Yes, people do indeed make a handsome amount of money if the luck is in their favour, but if the value goes down, they may have to deal with a significant loss. Also, once the value goes down, there is no fixed time when the cost will go up again. So invest mindfully.
How investing in Bitcoin works
Just like any other investment, before you invest in bitcoin, do proper market research and understand the risk. You should also be aware of scams that are very common in the case of cryptocurrencies. Keep reading or visit website like bitcoinsecret to know about the dangers related to bitcoin.
No guarantee
If anyone promises you a high guaranteed return on your bitcoin is nothing but fraud or scammer. The value of bitcoin is highly volatile and can never be ensured. One day it may be super high while it can drop down to very low levels right the next day.
Just because someone you know made a lot of money out does not mean even you will. It’s all about the value of the cryptocurrency then. Therefore, only invest the money in it if you can afford to lose it. J
How to pay using bitcoin?
You can easily pay using bitcoin online just like you pay with your credit or debit cards. The good thing about bitcoin payments is that it does not charge transaction fees just like all the banks and gateways do. Also, it does not reveal the identity of the user.
Less legal protections
When you pay with credit or debit cards, you do have a privilege of legal actions. For instance, if you wish to return or dispute a purchase, your credit company provides you with all the support to get your money back, but that’s not the case with Bitcoins. Payments made with bitcoins are not reversible. Once you have may the payment with bitcoin, and you wish to dispute the purchase or by chance do not receive the product, there is no support available for you. The only way to get your money back is if the seller is willing to send it back. Since bitcoin payments do not even disclose the identities, it can be very risky.
Therefore, before buying anything from your bitcoin, try to know about the seller and his/her location so that you can take action if anything goes unwell.
